Solo Brands, Inc. reported that sales fell 43.7 percent in the third quarter, with drops of 48.1 percent at Solo Stove and 16.0 percent at Chubbies. The company, which also owns the equipment brands Oru Kayak and Isle Paddle Boards, plans to accelerate expense-cutting measures to better align its cost structure with demand.

“The third quarter was challenging, reflecting continued pressure on consumer demand while we rebuild retail relationships and work through excess retailer inventory primarily within our Solo Stove division,” said John Larson, president and chief executive officer. “We maintained stable gross margins and generated $11 million in operating cash flow — our second consecutive quarter of positive cash generation — demonstrating the impact of stronger cost discipline and improved working capital management.

“We recognize that we have work to do on the top line. While recent product launches are gaining momentum, current performance underscores the need to further accelerate structural cost reductions to align our operating model with demand. SG&A was reduced by 35.4 percent versus the same quarter last year, reflecting our ongoing commitment to drive efficiency and preserve cash.

“On a positive note, the initial response to the Summit 24 and Infinity Flame firepits has been quite favorable and has improved our year-over-year sales trends in October, which is encouraging as we head into the all-important holiday season.

“Our focus remains clear: to stabilize the business, strengthen our balance sheet, and position Solo Brands for sustainable, profitable growth over time,” concluded Larson.

Consolidated Third Quarter 2025 Highlights
(Compared to Third Quarter 2024)

  • Net sales of $53.0 million decreased 43.7 percent from $94.1 million, reflecting lower sales in the Solo Stove segment as retail partners reduced excess inventory and the company reset promotional activity across retail and direct-to-consumer (DTC) channels. The Chubbies segment DTC channel net sales (“DTC sales”) were relatively flat, while the retail channel net sales declined from the prior year period.
  • Gross profit of $31.8 million, or 60.0 percent of net sales, decreased by 19.0 percent compared to the prior year period. Adjusted gross profit of $32.2 million, or 60.6 percent of net sales, decreased by 44.9 percent versus the prior year period as a result of the impact of the inventory write-down related to IcyBreeze in 2024.
  • Operating expenses were $48.0 million, down 68.9 percent, primarily due to reductions of $81.7 million in year-over-year restructuring, contract termination, and impairment charges, with the remainder driven by lower marketing and distribution costs across both segments. Distribution costs declined due to lower sales volumes, while marketing expenses decreased through more efficient spending deployment.
  • Net loss of $22.9 million, or $9.22 a share, improved over the net loss of $111.5 million, or $47.72, from the prior year period. Adjusted net loss of $11.9 million, or $4.33 per share, declined from adjusted net income of $1.4 million, or 73 cents, a year ago.
  • Adjusted EBITDA of $(5.1) million, compared to $6.5 million in the prior year period.

Segment Third Quarter 2025 Highlights
(Compared to Third Quarter 2024)

Solo Stove

  • Net sales of $30.8 million declined 48.1 percent, reflecting lower sales as retail partners reduced excess inventory and the company reset promotional activity across retail and DTC channels.
  • Segment EBITDA of $1.4 million, or 4.4 percent of net sales, declined from $14.6 million, or 24.6 percent of net sales, in the prior year period, reflecting the implementation of strategic initiatives and operating de-leverage associated with lower sales.

Chubbies

  • Net sales of $16.5 million decreased 16.0 percent, as retail channel replenishments occurred earlier in 2025 compared to the prior year. DTC sales were essentially flat year-over-year, supported by sustained consumer demand.
  • Segment EBITDA of $(1.2) million, or (7.5) percent of net sales, declined from $(0.5) million, or (2.4) percent of net sales, in the prior year period.

Consolidated Nine Months Ended September 30, 2025
(Compared to Nine Months Ended September 30, 2024)

  • Net sales decreased to $222.5 million, down 28.4 percent, driven by declines in both retail and DTC sales within the Solo Stove segment, partially offset by sales momentum in retail and DTC channels for the Chubbies segment.
  • Gross profit of $131.1 million, or 58.9 percent of net sales, decreased by 24.0 percent versus a year ago. Adjusted gross profit of $131.9 million, or 59.3 percent of net sales, decreased by 31.6 percent versus the prior year as a result of the impact of the inventory write-down related to IcyBreeze in 2024.
  • Operating expenses decreased to $167.7 million, down 42.5 percent, primarily due to reductions of $65.6 million in expenditures related to restructuring, contract termination, and impairment charges, with the remainder driven by lower marketing spend and volume, as described above.
  • Net loss of $62.3 million, or $26.59 a share, decreased from a profit of $122.0 million, or $52.38, a year ago. Adjusted net loss was $17.1 million, or $7.71 a share, compared to adjusted net income of $5.2 million, or $3.53.
  • Adjusted EBITDA of $8.9 million, declined from $26.2 million in the prior year period.

Segment Nine Months Ended September 30, 2025
(Compared to Nine Months Ended September 30, 2024)

Solo Stove

  • Net sales decreased to $95.2 million, down 47.5 percent, reflecting lower sales as retail partners reduced excess inventory and the company reset promotional activity across retail and DTC channels.
  • Segment EBITDA of $3.3 million, or 3.4 percent of net sales, declined from $37.0 million, or 20.4 percent of net sales, in the prior year period, reflecting the implementation of strategic initiatives and operating de-leverage associated with lower sales.

Chubbies

  • Net sales increased $15.1 million to $103.6 million, up 17.0 percent, driven by strong growth through retail strategic partnerships, coupled with solid demand within the DTC sales channel.
  • Segment EBITDA of $21.5 million, or 20.8 percent of net sales, improved from $12.2 million, or 13.8 percent of net sales, in the prior year period due to the sustained net sales growth and more efficient marketing spend as the strategic retail network is increasingly leveraged.

Consolidated Balance Sheet

  • Cash and cash equivalents were $16.3 million as of September 30, 2025, compared to $12.0 million at December 31, 2024.
  • Inventory was $84.8 million as of September 30, 2025, compared to $108.6 million at December 31, 2024, due to a reduction in inventory balances to meet demand from the DTC and retail channels, and to optimize our supply chain and mitigate tariff impacts.
  • Outstanding borrowings were $247.1 million, net of interest paid-in-kind, under the 2025 Term Loan as of September 30, 2025, with no outstanding balance under the 2025 Revolving Credit Facility for the same period. As of September 30, 2025, the availability for future draws on the 2025 Revolving Credit Facility, based on the borrowing base as of such date, was $60.6 million, net of issued letters of credit.

Image courtesy Solo Stove